Orocobre buys Canadian JV partner
PERTH (miningweekly.com) – Dual-listed lithium miner Orocobre has inked a definitive agreement to acquire TSX-V-listed Advantage Lithium Corp.
Under the terms of the agreement, Advantage shareholders will receive 0.142 Orocobre shares for every one Advantage share held, valuing the takeover target’s shares at 42c each, based on Orocobre’s last closing price of A$3.29 a share.
Orocobre is currently the largest shareholder in Advantage, holding a 34.7% interest in the Canadian lithium explorer.
If approved, the takeover offer would see Orocobre issue 15.1-million of its own shares, increasing its total issued share by 5.8%, with the company telling shareholders on Wednesday that the shares would be issued under its existing placement capacity, meaning that shareholder approval would not be required.
With the acquisition of Advantage, Orocobre would gain exposure to the 4.8-million tonnes of measured and indicated resources, and the 1.5-million tonnes of inferred resources at Advantage’s Cauchari development, in Argentina, where Orocobre currently holds a 25% interest with Advantage holding the balance.
Orocobre told shareholders that the integration of Cauchari with the company’s own Olaroz project would enable Orocobre to deliver optimal basin management and would maximise the long-term productive capacity of the Olaroz/Cauchari basin.
The development of Cauchari will be considered within future plans for the Olaroz lithium facility.
The board of Advantage have approved the transaction, and have urged its shareholders to vote in favour of the agreement.
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